You Can Now File Bankruptcy Online in Canada

Filing Bankruptcy Online in Canada: A Step-by-Step Guide

In this digital age, we are witnessing a shift in the approach to various legal processes, including bankruptcy. Yes, you read that right! It’s now possible to file bankruptcy online in Canada, thanks to the updated guidelines from the Office of the Superintendent of Bankruptcy (OSB).

This article provides a detailed guide on how to navigate this process, ensuring you can manage your financial difficulties with dignity and convenience, right from the comfort of your home.

Understanding Bankruptcy in Canada

Bankruptcy in Canada is a highly regulated process, governed by federal legislation under the Bankruptcy & Insolvency Act. All Licensed Insolvency Trustees (LITs) are registered and monitored by the OSB, ensuring that everyone involved in a bankruptcy or consumer proposal is treated fairly.

Prior to the recent updates, anyone filing bankruptcy or a consumer proposal was required to meet in-person with an LIT for an assessment of their situation. But, with the ongoing COVID-19 pandemic necessitating social distancing, the OSB has now updated these guidelines to allow for phone and online video-conferencing, as well as electronic signatures.

The Advantage of Filing Bankruptcy Online

The ability to file bankruptcy online comes with several benefits. First and foremost, it allows for the necessary social distancing required by the COVID-19 pandemic. It also saves time, as you no longer need to travel to and from your LIT’s office. Additionally, the use of digital tools allows for streamlined communication and easier access to relevant documents.

Step-by-Step Guide to File Bankruptcy Online

Here is a detailed step-by-step guide on how to file bankruptcy online:

Step 1: Consult a Licensed Insolvency Trustee

The first step in filing bankruptcy online is to consult a Licensed Insolvency Trustee (LIT). These are the only professionals legally authorized to administer bankruptcy and consumer proposal processes in Canada. During your initial consultation, which is usually free, the LIT will assess your financial situation, explain the available options, and make a recommendation based on your unique circumstances.

Step 2: Assessment of Your Financial Situation

The LIT will ask various questions to assess your financial situation. These may include details about your income, expenses, assets, and debts. This information will help the LIT provide the best possible advice for your specific situation. Remember, there is no one-size-fits-all solution in debt management.

Step 3: Understanding Your Options

Based on the assessment of your financial situation, the LIT will present some options. These may include:

Step 4: Preparing Your Bankruptcy Documents

Once you’ve decided to proceed with bankruptcy or a consumer proposal, your LIT will prepare the necessary documents. You will be sent a copy of these documents via email to review and ensure all the information provided is accurate. If everything is in order, you can sign the documents digitally.

Step 5: Filing Your Bankruptcy Documents

After you have signed the documents, your LIT will submit them electronically to the government and the court. This marks the beginning of your insolvency proceeding, and a stay of proceedings is issued, which prevents creditors from pursuing you for debts.

Step 6: Meeting Your Obligations

During your bankruptcy, you will be required to attend two credit counselling sessions, which can also be conducted via video-conferencing. Payments can be arranged electronically to fit your income schedule.

Step 7: Completion and Discharge

Once you have fulfilled all your obligations, your bankruptcy will be completed, and you will be discharged from your debts.


The ability to file bankruptcy online in Canada offers a convenient and safe option for those struggling with debt, particularly during these challenging times. It’s important to remember that while bankruptcy can provide relief, it should be considered a last resort. Always consult with a Licensed Insolvency Trustee to explore all available options and choose the best course of action for your specific situation.

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